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Hello Mike!
I dont really understand the answer for Dec’14 3b-particularly second part.
Can you please explain me why maintenance costs are capitalized and not expensed here.
I did not understand the explanation in official answer.I am sure that this question was asked already – unfortunately I could not locate an answer on this site.
The reason is that the 10 year maintenance programme is an integral element of the asset and is foreseen at the time of its purchase
If that were not the case and the maintenance cost did not improve the performance of the asset, then it would be expensed
Does that do it for you?
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